When you’re buying your first home, every penny counts, and your mortgage rate plays a huge part in what your monthly payments will look like. Even a small difference in the interest rate can add up to thousands of pounds over the life of your mortgage, so understanding how rates work (and how to make yourself eligible for the best ones) is a key part of preparing for homeownership.
If mortgage rates feel confusing or overwhelming, don’t worry, you’re not expected to be an expert. This guide will walk you through everything in simple, clear steps, so you can make confident decisions as you start your home-buying journey.
Your mortgage rate is the percentage of interest you pay on the amount you borrow. This directly affects your monthly mortgage repayments. For example, borrowing the same amount at 4% compared to 5% could mean paying hundreds of pounds more every year. That’s why knowing what influences rates and what you can do to improve yours is so important.
There are different types of mortgage rates, including:
Most first-time buyers choose a fixed rate for stability, especially when budgeting carefully.
Several factors shape the rate you're offered. Some are within your control, and some aren’t.
The Base Rate sets the tone for all UK borrowing costs. When it rises, lenders usually increase their mortgage rates. When it falls, mortgage rates often become more competitive.
Although you can’t control the Base Rate, understanding how it affects lenders can help you choose the right time to apply.
Put simply, this is the rate that the lenders lend to each other at. The rate at which lenders can borrow the money will directly affect what they charge you.
Your deposit has one of the biggest impacts on the rate you’ll be offered.
A larger deposit means:
Lower risk = better interest rates.
Even moving from a 5% to a 10% deposit can open up much better deals.
Your credit score shows lenders how reliably you manage money. A higher score usually means you’ll have more lender choices, which can lead to better rates. You don’t need a perfect score, just a consistent track record of paying bills on time and managing credit responsibly. Jigsaw Independent can help you obtain a free copy of your credit file. Please ask us
Even if rates across the market look similar, every lender has its own rules around affordability, income, and risk. That’s why using a whole-of-market broker like Jigsaw Independent Mortgage Specialists can make such a difference; we help match you with lenders who are most likely to offer strong rates based on your circumstances. A lot of buyers lose money when they apply for a mortgage with the wrong lender. Application fees are lost if the lender comes back and says that they are not able to lend, as you do not fit the criteria.
A little preparation early on can translate into a much better rate later.
Here’s what to focus on:
These small steps show lenders you’re a reliable borrower, which helps unlock better mortgage deals.
The mortgage market can feel overwhelming, especially when you start comparing products from dozens of lenders, but the best mortgage isn’t always the one with the lowest headline rate; fees, flexibility, and product charges all matter too. That’s why we do this for you! We will:
You never have to navigate this alone.
Many first-time buyers assume you can “lock in” a rate at the Agreement in Principle (AIP) stage, but that isn’t the case. A rate can only be secured once your full mortgage application has been submitted.
A rate lock protects you if rates rise while your application is being processed, giving you peace of mind during the final stages of your home purchase.
Government support can help you access better rates by reducing how much you need to borrow or by boosting your deposit. Here are the key schemes worth exploring:
There’s no single “perfect” moment to get a mortgage; it depends on your deposit, your stability, and how the market is. If interest rates are changing or you’re unsure about timing, a quick chat with an advisor can help bring clarity.
Getting the best first-time buyer mortgage rate doesn’t come down to luck; it comes down to preparation, research, and choosing the right lender. With expert guidance, first-time buyers can secure competitive rates that make homeownership more affordable now and in the long term.
If you want friendly, honest advice tailored to your situation, contact us. We’re here to guide you through every step and help you secure the best possible rate for your first home.
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